Reddit was founded by Steve Huffman and Alexis Ohanian in 2005. The company is headquartered in San Francisco, California. Reddit systematically gives it many aspects of a social communication service, though it’s not as Facebook, Google+, and other sites that aim to provide social networking services.
Reddit’s “stock meme” is extremely hot and has become an attraction for traders. According to information disclosed on Thursday from two stock experts, in preparation for this issue of shares, Reddit is looking for lawyers and investment bankers and hiring them. It is the first batch of shares to be launched in New York – IPO (Initial Public Offering).
Reddit expects the amount of IPO valuation next year to be higher than this year, the specific figure is $ 15 billion. Last month, in a private funding round, Reddit was valued at $10 billion.
Reddit did not give specific information about the steps involved in preparing for the IPO and the reason is the security requirement. Market conditions will affect both the timing and size of the IPO.
CEO Steve Huffman said they have not given a specific timeline, although the company has plans to list shares.
The meme stocks are said that their valuation is too high. For GameStop Corp’s best trading rules and meme stocks at the start of the year, retailers flocked to message boards.
As revealed by Huffman, there were millions of new users signing up for Reddit during the peak of trading. As of October last year, Reddit has around 100,000 subreddits and nearly 52 million daily active and engaged users on the app. The company has not released specific numbers recently.
Advertising is the most profitable area for the company. It also attracted major investors such as Fidelity Investments, Andreessen Horowitz, Sequoia Capital, and Tencent Holdings. Advertising revenue tripled compared to the same period last year to $100 million.
Robinhood Markets Inc. is a pioneer in offering no-commission exchange-traded funds and stocks through a mobile app. It capitalized on the meme stock IPO boom, and its stocks rose about 28% in that period.
